UK soy prices remain high

UK soymeal prices remain high as South America's expected huge soy crop did not materialise.

 

The main reasons for the lack of movement in the markets are the ongoing weakness of sterling, increasing freight costs and a continuing lack of supply from South America.

 

Prices have started to creep back, with a GBP 15-20 (US$21.55-28.73) per tonne discount now available for June delivery, but any substantial price movement may now have to wait until the autumn.

 

Expect better protein prices from here on, but not massive discounts to appear overnight. With summer deliveries of soymeal available in the GBP 260-270 (US$373.41-387.62) per tonne bracket - better than the same time last year - it makes sense to secure at least 50% of summer requirements by the end of June.

 

Argentinean farmers are also reluctant to release any significant volume of the recent record soy harvest onto the market with inflation in Argentina officially at 10%. This means supplies into the UK continue to remain tight.